Lion One Metals (TSXV: LIO) has closed its previously announced private placement for gross proceeds of C$11.5 million, which the company plans to use for exploration and development on its Tuvatu gold project in Fiji.
Under the private placement, the company issued a total of 14.38 million units at a price of C$0.80 per unit. Each unit consists of one common share and one common share purchase warrant, which entitles the holder to purchase one additional common share at C$1.20 per share at any time until June 6, 2021.
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Shares of Lion One jumped more than 9% to a four-week high of C$1.09 during Monday’s session. The company’s market capitalization is approximately C$109.3 million.
The Tuvatu alkaline gold project, located within the reaches of the Navilawa volcano, is considered the largest undeveloped gold project in the island nation. Lion One holds a 13,619-hectare exploration license covering the entire Navilawa volcano, with the Tuvatu mining lease at its center.
Based on the latest technical report, the project has an estimated indicated resource of 1.1 million tonnes at 8.46 g/t Au for 299,500 ounces of gold.
